Dividend payout ratio is equal to ___________ (A) the dividend yield plus the capital gains yield (B) dividends per share divided by earnings per share (C) dividends per share divided by per value per share (D) dividends per share divided by the current price per share

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Solution

dividends per share divided by earnings per share
Dividend payout ratio calculates the amount paid to shareholders as dividends in relation to the amount of net income generated by the business.
It can be calculated as follows:
Dividend Payout Ratio (DPR) : Dividends per share / Earnings per share
Therefore, the correct option is (B)

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